Research On The Pledge Of Controlling Shareholding Of HUAYI Electric And Its Influence On Performance

At the moment,the equity pledge with convenience and ease the financing constraints on the effectiveness of advantage,a-share market presents the blowout growth equity scale,the controlling shareholder,the number of companies implement equity pledge occupy half,and there are A large number of the controlling shareholder of close to 100% of equity pledge,the resulting risk is also increasing,the explosion of landmine events emerge in endlessly,so the controlling shareholder equity pledge themselves to the effects of corporate performance is necessary.This is of great significance to promote the healthy development of equity pledge of listed companies in China,and can also provide a reference for investors to invest in equity pledge companies.Based on this,this paper adopts the method of literature and case analysis,taking HUAYI ELECTRIC as an example.Firstly,this paper summarizes the relevant literature on scholars’ interest appropriation and synergistic effect of controlling shareholders,the motivation,risk and impact of equity pledge on corporate performance,and then defines the concept of controlling shareholders,equity pledge,hold-out behavior and corporate performance,and explains the theory of control power,principal agent and information asymmetry.It also explores the mechanism of controlling shareholders’ equity pledge affecting corporate performance.Second,about the present situation of the controlling shareholders of listed companies equity pledge and China instrument gas controlling shareholders equity pledge is analyzed,and once again,explores the controlling shareholder equity pledge path influence the performance of companies,mainly expounds the equity pledge after two rights separation,the controlling shareholder once facing financial constraints,most likely hollowed motivation,Problems that affect corporate performance by influencing business decisions and R&D investments.After clarifying the path,this paper analyzes the influence of the equity pledge of controlling shareholders of HUAYI ELECTRIC on the company’s performance from four dimensions: market performance,management performance,financial performance and comprehensive performance.One is using the event study method to controlling shareholders equity pledge frequently important time nodes are analyzed in the capital market reaction,using tobin Q value of the stock market performance analysis,and performance evaluation of its market,the second is to use the Z value on the management performance evaluation,three is to use financial four ability evaluation method,combining with the industry average,From the vertical and horizontal to the financial performance caused by the comparative analysis,the fourth is to use factor analysis method to evaluate its comprehensive performance.Through these four dimensions,this paper aims to comprehensively analyze the influence of controlling shareholders’ equity pledge on corporate performance.After a comprehensive analysis of the case,the following conclusions are drawn: First,serious cash flow problems promote the continuous behavior of equity pledge.Second,the defects of internal control strengthen the controlling shareholder’s interest embezzlement motivation.Third,the controlling shareholder’s equity pledge has a negative impact on the company’s performance.Then,this paper puts forward several suggestions from two aspects of internal governance and external supervision.One is to improve the disclosure of equity pledge information and restrain the bad motives of controlling shareholders’ equity pledge.The second is to optimize the internal control system of the company,improve the ownership structure of the single dominant share,and establish the balance type ownership structure;Third,strengthen the control of equity pledge to reduce its pledge risk.In the end,the shortcomings and prospects of this study are put forward.